Ryden - Edinburgh, The Bridge on The Royal Mile, Edinburgh

Date: 03 Mar 2010

The Bridge Complex, Edinburgh, bought for £41m, yielding about 6%.

SWIP Property Trust (SWIPPT), with Ryden acting, has paid £41m for The Bridge on The Royal Mile, Edinburgh, showing a net yield in the region of 6%. The property is situated in a prime location in the heart of Edinburgh's Old Town and includes two retail units, two restaurants, a banking hall and the five star boutique Missoni Hotel.

The transaction represents one of the most significant investment sales in Edinburgh this year.

Gerry Ferguson, head of UK property fund management for SWIP, said: "SWIP believes that the market has become increasingly competitive as more buyers target a limited supply of properties. Strong relationships with our contacts in the industry have allowed us to continue to purchase properties that meet with our strategy of investing in core, quality property with long secure income."

Gerry Ferguson continues: "The Bridge on the Royal Mile is an exciting opportunity providing a diverse income stream which benefits from an excellent location in a major tourist and business destination in the City of Edinburgh. Despite the challenging economic conditions, SWIP believes Edinburgh has fared well relative to other UK markets, being one of the principle global tourist locations and a worldwide heritage centre. This latest acquisition will deliver long-term benefits to the fund and we'll continue to look for opportunities in the market with the aim of maximising the total return from the portfolio."

Ryden represented SWIP in the purchase of The Bridge. Ford Swanson, partner at Ryden, commented: "The sale of this landmark development generated significant interest within the commercial property investment sector and attracted bids from a mix of UK institutional investors, property companies and overseas investors. The level of interest generated in this sale emphasizes the appeal of this mixed-use development, its strong underlying cash flow and also the wider market confidence in the city of Edinburgh."

He added: "SWIPPT's undoubted reputation as performers in the market and ability to operate effectively within defined timescales were key in securing this asset."

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